Bitcoin Foundation applied to the court to seek cancellation of BitLicense

One of the oldest members of the Bitcoin Foundation, company Theo Chino, decides to challenge the licensing procedure for cryptocurrency companies, located in New York.

In a statement Chino sent to the Supreme Court of New York, the New York Department of Financial Services (NYDFS) acted illegally and obliged crypto companies to obtain licenses to conduct business.

The document also emphasizes that NYDFS was not given the authority to regulate cryptocurrency, and therefore the introduction of BitLicense is an abuse of authority.

Bitcoin Foundation also supported Theo Chino's initiative. The organization has already made a statement, which calls the introduction of BitLicense a "poorly thought out" step that "almost completely destroyed the bitcoin innovation in New York from its inception in June 2015".

"We can either sit and wait for other regulators across the United States and the rest of the world to begin to model bitcoin regulation following the example of New York, or we will act. Fortunately, we still have the opportunity to stop BitLicense and revive the bitcoin-innovation. If we do not act now, the choice will be made for us," the Bitcoin Foundation statement said.

At the same time, Bitcoin Foundation created a special bitcoin wallet to collect donations that will go to court costs. According to the organization, for these purposes, the amount from $ 100,000 to $ 200,000 will be required, depending on the length and number of stages of the trial.

The next hearing is scheduled for May 4, 2017.

Just to remind you: by today BitLicense has received only three companies: Circle, Ripple and Coinbase. In addition, NYDFS issued banking patents to the Gemini Trust Company and Trust Company itBit. At the same time, several dozen well-known companies refused to play according to the rules proposed by them and preferred to stop their activities on the territory of the State of New York.